What Is an Afs License?

An AFS license is required to for any Australian finance business.

An AFS, or Australian financial services, license, is a document that you will need if you want to found a business in the financial services industry in Australia.

Significance

An AFS license gives you or your employees the authority to provide financial services to clients. This includes giving financial advice, banking, giving out loans, financial brokering, providing trustee services and any other type of service that involves the handling and transaction of money.

Acquisition

In order to qualify for an AFS license in Australia, any entrepreneur in the financial services industry must apply to the ASIC, or Australian Securities and Investments Commission. In addition to filing the application and paying the required fee, applicants must show that they are competent, responsible and capable of funding and maintaining whatever business they are proposing.

Advice

If you take certain precautions, the ASIC tends to take less time reviewing your AFS application and deciding whether it will be approved. It helps to describe your proposed business, show all appropriate authorizations and promptly respond to any other queries that the ASIC might have.

References

• AFS Licensing Kit